You hear it all the time now in response to “what do you do?” And the answer is “day trade.” Now you want to know how you too can make a living day trading. It sounds so exciting, so enticing, so profitable. You see the pictures online of fast cars, fancy yachts, and exotic vacations. We’ve compiled the first, crucial steps you’ll need to take to start making a living as a day trader. Day trading is trading that encompasses any stock that you buy and sell on the same day. We’ve compiled all the basics of what you need to know before you start making a living day trading.
The first question really should be, “how much do you need to make?” Now keep in mind that day trading isn’t like a salaried job, from month to month you can see sizable swings in profits or losses. The markets go through cycles and you’ll need to be able to get through down cycles to enjoy, and profit, off the up cycles. In order to budget for your new career, you will need to factor in losses, software fees, commissions, overhead costs, and taxes.
The next step to becoming a day trader is determining how much risk capital you have. What can you afford to invest in your new career day trading? If you are starting out with only $5,000.00 for example, it’s not very probable that you’ll be able to trade your way to making a living in your first year, unless you have very, very low overhead or can move into your mom’s basement for a couple of months.
Next you need to determine where you want your office to be and the schedule you want to keep. Working from home may save you money but does it offer too many distractions? These are personal factors that you need to consider when setting up your “office.”
Okay, now that you know how much you need to make, how much you can invest, and where you’re going to be working, it’s time to learn some strategies for actually making a profit day trading. For that, you need to head on over to Warrior Trading. They have everything you need to know to make money day trading.
Best of luck on your new career and we’d love to hear from you in our comment section below. What the one thing you wish you had known before making that first day trade and if you haven’t made that first trade yet what are you waiting for?